Bloomberg:
- Russians Race to Secure Mortgages Before Costs Spiral. Russians are racing to take out mortgages on concern that borrowing costs will rise further after the ruble’s weakness prompted the central bank to increase interest rates. The number of people applying for mortgages at Bank VTB 24, a retail unit of state-controlled VTB Group (VTBR), almost tripled in the first two weeks of December compared with the November average, according to Andrey Osipov, head of the Moscow-based bank’s home-loan department. The bank is lending as much as 2.5 billion rubles ($46 million) each day, he said.
- Russian Bank Squeeze Captured by Gap in Rates: Chart of the Day. The rate at which Russian banks borrow from each other is the highest on record relative to the central bank’s benchmark as policy makers squeeze liquidity to boost the ruble and trust between commercial lenders deteriorates.
- UBS Raises Flag on China’s $1 Trillion Overseas Debt Pile. UBS Group AG is flagging risks from China’s $1 trillion worth of unhedged foreign debt as forecasters see bets against the greenback unwinding in 2015. The world’s second-largest economy is exposed to shifts in currency and interest rates as never before because of expanding international trade and easing foreign-exchange regulations, said Stephen Andrews, head of Asia banks research in Hong Kong at UBS. Daiwa Capital Markets has a $1 trillion estimate for carry-trade inflows since 2008, bets on the difference between yields in China and overseas. It sees a 5.7 percent drop in the yuan next year.
- China Brokers’ Profit Seen at Risk From Government Action. China’s surging stock market is raising the prospect of government action to prevent an equities bubble, a potential threat to brokerage earnings that are projected to hit a seven-year high this year. UBS Group AG says regulators could act to limit the use of credit in buying stocks. In 2007, authorities raised a trading tax following a sixfold increase in the Shanghai Composite Index over two years. The securities regulator this month cautioned investors on buying shares and started inspecting some brokerages’ margin finance businesses.
- China Stocks Fall on Bets Government Taking Steps on Bubble Risk. China’s stocks fell, extending the benchmark index’s biggest loss in two weeks, amid speculation the government is taking measures to cool the world’s best-performing major stock market over the past month. Citic Securities Co. and Haitong Securities Co., the nation’s biggest securities firms, slid more than 3 percent. Some brokerages raised the threshold for margin trading and short selling to control risks, the 21st Century Business Herald reported, while data showed new stock-trading accounts dropped 29 percent last week. China Life Insurance Co. and China Minsheng Banking Corp. slumped more than 3 percent to drag down a gauge of financial shares by the most among industry groups. The Shanghai Composite Index fell 0.4 percent to 3,020.84 at 9:47 a.m., after plunging 3 percent yesterday.
- Asian Stocks Pace U.S. Gains on Economy While Oil Drops. Asian stocks climbed, as Japanese shares followed gains in U.S. equities after data showed the world’s biggest economy grew at the fastest pace since 2003 last quarter. Australian bonds fell as crude oil retreated. The MSCI Asia Pacific Index jumped 0.5 percent by 10 a.m. in Tokyo, with the Topix index rising 1 percent after a holiday in Japan yesterday.
- Demonstrators Defy NYC Mayor's Call to Suspend Police Protests. Demonstrators tried to disrupt holiday shopping on New York’s Fifth Avenue today, defying Mayor Bill de Blasio’s request to suspend protests after two police officers were fatally shot over the weekend. Bearing signs calling for justice against police who have killed unarmed men, hundreds gathered near Central Park in a chilly light rain. “Stop Racist Police Terror,” read one banner displayed at Grand Army Plaza. “It’s preposterous and insulting to the people of color to say we should be silent,” said Noha Arata, 35, of Brooklyn. “Not showing up would have essentially had us agree with Mayor de Blasio."
- Meredith Whitney’s Fund Sued by Billionaire Platt’s BlueCrest. Meredith Whitney’s hedge fund is being sued by its biggest investor, a fund connected to billionaire Michael Platt’s BlueCrest Capital Management, as demands to recoup money spill into court, according to people with knowledge of the dispute.
- No Way Out for Iraqis Who Helped U.S. in War. Iraqi Colleagues of U.S. Troops Are Marked for Death by Islamic State. The first emails from Iraq landed in John Kael Weston ’s inbox while he was eating breakfast at a Utah ski resort. Islamic State fighters had just seized Fallujah, and the former State Department diplomat fired off a worried message to the Iraqi policeman who helped him over and over again during the war’s darkest days.
- China’s Shadow-Banking Boom Is Over. Tighter Government Rules, Jump in Stock Market Curb Informal-Lending Sector. Following years of explosive growth, China’s shadow-banking industry is experiencing a sharp slowdown after Beijing tightened its grip on the sector, which has been a key source of funding for the economy but also has added to rising debt levels and other risks in the financial system.
- The Fed is heading for another catastrophe. America’s Federal Reserve is headed down a familiar — and highly dangerous — path. Steeped in denial of its past mistakes, the Fed is pursuing the same incremental approach that helped set the stage for the financial crisis of 2008-2009. The consequences could be similarly catastrophic.
Business Insider:
Yonhap News:
- N. Korea can practically miniaturize nukes: Seoul. South Korea believes that North Korea has practically acquired the technology to miniaturize nuclear warheads that could be mounted on its long-range ballistic missiles, military sources said Tuesday.
- Uber taxi founder indicted for illegal business in S. Korea. South Korean prosecutors said Wednesday they have indicted the founder of the U.S.-based taxi service Uber on charges of operating an illegal taxi service here. The Seoul Central District Prosecutors' Office said it prosecuted Travis Kalanick, the founder and CEO of the app-based taxi service, and the head of MK Korea, a local rental-car service operator, identified only as Lee, both without physical detention.
- Some China Brokers Raise Margin Trading Threshold. Some brokerages raised new account threshold for margin trading and short-selling businesses to control risks, without citing anyone.
- None of note
- Asian equity indices are -.25% to +.75% on average.
- Asia Ex-Japan Investment Grade CDS Index 102.0 -1.0 basis point.
- Asia Pacific Sovereign CDS Index 64.5 -.75 basis point.
- S&P 500 futures +.09%.
- NASDAQ 100 futures +.08%.
Earnings of Note
Company/Estimate
- None of note
8:30 am EST
- Initial Jobless Claims are estimated to rise to 290K versus 289K the prior week.
- Continuing Claims are estimated to rise to 2375K versus 2373K prior.
- Bloomberg consensus estimates call for a weekly crude oil inventory decline of -1,811,110 barrels versus a -847,000 barrel decline the prior week. Gasoline supplies are estimated to rise by +733,330 barrels versus a +5,250,000 barrel gain the prior week. Distillate supplies are estimated to fall by -822,220 barrels versus a -207,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to fall by -.19% versus a -1.9% decline the prior week.
- None of note
- The $29B 7Y T-Note auction, weekly Bloomberg Consumer Comfort Index, weekly EIA natural gas inventory report and weekly MBA mortgage applications report could also impact trading today.
No comments:
Post a Comment